General World News

Prepayment activity drops to another record low as mortgage rates top 7%

Prepayment activity fell to another record low in October amid mortgage rates topping 7% and refis drying up. Black Knight expects that the steep declines in rate lock volume and seasonality factors point to further declines in prepayment activity.

Prepayment dropped 16.5% to a single-month mortality rate of 0.48%, well below the previous record of 0.55%, according to Black Knight’s October mortgage performance statistics report.

“While this is obviously a challenging environment from an origination perspective – the refi market is essentially nonexistent at this point – it also tends to increase the value of mortgage servicing rights on older loans with details ⇒

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